Post on 21-Aug-2020
Sherrill F. Norman, CPA
Auditor General
Report No. 2018-008
July 2017
FLORIDA VIRTUAL SCHOOL
Florida Education Finance Program
Full-Time Equivalent Student Enrollment
For the Fiscal Year Ended
June 30, 2016
Att
esta
tio
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xam
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ion
Board Members and President and Chief Executive Officer
During the 2015-16 fiscal year, Ronald Blocker served as President and Chief Executive Officer and
the following individuals served as Board of Trustees:
Member County
Brian Cunningham Broward Dorene McShea Collier Iris Gonzalez Pinellas Dame Dhyana Ziegler, DCJ, Ph.D., Chair Leon Robert Gidel Sr. Orange Linda Pellegrini Orange Robert Saltsman Orange
The team leader was Bernice Rivas, and the examination was supervised by Aileen B. Peterson, CPA, CPM.
Please address inquiries regarding this report to J. David Hughes, CPA, Audit Manager, by e-mail at
davidhughes@aud.state.fl.us or by telephone at (850) 412-2971.
This report and other reports prepared by the Auditor General are available at:
FLAuditor.gov
Printed copies of our reports may be requested by contacting us at:
State of Florida Auditor General
Claude Pepper Building, Suite G74 ∙ 111 West Madison Street ∙ Tallahassee, FL 32399-1450 ∙ (850) 412-2722
FLORIDA VIRTUAL SCHOOL
TABLE OF CONTENTS
Page No.
SUMMARY ................................................................................................................................................ i
INDEPENDENT AUDITOR’S REPORT ON FULL-TIME EQUIVALENT STUDENT ENROLLMENT ....................................................................................................................................... 1
SCHEDULE A – POPULATIONS, TEST SELECTION, AND TEST RESULTS
Reported Full-Time Equivalent Student Enrollment .......................................................................... 4
Schools and Students ........................................................................................................................ 4
Teachers ............................................................................................................................................ 5
Proposed Adjustments ...................................................................................................................... 5
SCHEDULE B – EFFECT OF PROPOSED ADJUSTMENTS ON WEIGHTED FULL-TIME EQUIVALENT STUDENT ENROLLMENT ......................................................................... 6
SCHEDULE C – PROPOSED ADJUSTMENTS BY SCHOOL ................................................................. 7
SCHEDULE D – FINDINGS AND PROPOSED ADJUSTMENTS
Overview ............................................................................................................................................ 9
Findings ............................................................................................................................................. 9
SCHEDULE E – RECOMMENDATIONS AND REGULATORY CITATIONS ......................................... 13
NOTES TO SCHEDULES ....................................................................................................................... 15
MANAGEMENT’S RESPONSE .............................................................................................................. 18
FLORIDA VIRTUAL SCHOOL
LIST OF ABBREVIATIONS
EP Educational Plan
ESE Exceptional Student Education
ESOL English for Speakers of Other Languages
FAC Florida Administrative Code
FEFP Florida Education Finance Program
FTE Full-Time Equivalent
GK General Knowledge
IDEA Individuals with Disabilities Education Act
IEP Individual Educational Plan
PK Prekindergarten
SBE State Board of Education
Report No. 2018-008 July 2017 Page i
SUMMARY
SUMMARY OF ATTESTATION EXAMINATION
Except for the material noncompliance described below involving reporting errors or records that were
not properly or accurately prepared or were not available at the time of our examination and could not be
subsequently located for students in Basic with ESE Services, the Florida Virtual School (School)
complied, in all material respects, with State requirements relating to the classification, assignment, and
verification of the full-time equivalent (FTE) student enrollment as reported under the Florida Education
Finance Program (FEFP) for the fiscal year ended June 30, 2016. Specifically, we noted exceptions
involving reporting errors or records that were not properly or accurately prepared or were not available
at the time of our examination and could not be subsequently located for 8 of the 39 the students in our
Basic with ESE Services test.
Noncompliance related to the reported FTE student enrollment resulted in ten findings. The resulting
proposed net adjustment to the School’s reported, unweighted FTE totaled negative 4.9618 but has a
potential impact on the School’s weighted FTE of negative 5.3215.
The weighted adjustments to the FTE student enrollment are presented in our report for illustrative
purposes only. The weighted adjustments to the FTE do not take special program caps and allocation
factors into account and are not intended to indicate the weighted FTE used to compute the dollar value
of adjustments. That computation is the responsibility of the Department of Education. However, the
gross dollar effect of our proposed adjustments to the FTE may be estimated by multiplying the proposed
net weighted adjustment to the FTE student enrollment by the base student allocation amount. The base
student allocation for the fiscal year ended June 30, 2016, was $4,154.45 per FTE. For the School, the
estimated gross dollar effect of our proposed adjustments to the reported FTE student enrollment is
negative $22,108 (negative 5.3215 times $4,154.45).
The ultimate resolution of our proposed adjustments to the FTE student enrollment and the computation
of their financial impact is the responsibility of the Department of Education.
THE SCHOOL
The School was established pursuant to Section 1002.37(1)(a), Florida Statutes, to develop and deliver
online and distance learning education. The School’s mission as stated in Section 1002.37(1)(b), Florida
Statutes, is to provide students with technology-based educational opportunities to gain the knowledge
and skills necessary to succeed. The Commissioner of Education is responsible for monitoring the
School’s performance and reporting such performance to the State Board of Education and the
Legislature.
Section 1002.37(2), Florida Statutes, provides that the School is to be governed by a Board of Trustees
(Board) composed of seven members appointed by the Governor to 4-year staggered terms. The
executive officer of the Board is the appointed President and Chief Executive Officer. For the fiscal year
ended June 30, 2016, the School operated five virtual education cost centers serving PK through
12th-grade students.
Report No. 2018-008 Page ii July 2017
For the fiscal year ended June 30, 2016, State funding totaling $168 million was provided through the
FEFP to the School for the School-reported 32,119.50 unweighted FTE as recalibrated. The primary
sources of funding for the School are funds from the FEFP.
FEFP
FTE Student Enrollment
Florida school districts receive State funding through the FEFP to serve PK through 12th-grade students
(adult education is not funded by the FEFP). The FEFP was established by the Florida Legislature in
1973 to guarantee to each student in the Florida public school system, including charter schools, the
availability of programs and services appropriate to the student’s educational needs that are substantially
equal to those available to any similar student notwithstanding geographic differences and varying local
economic factors. To provide equalization of educational opportunity in Florida, the FEFP formula
recognizes: (1) varying local property tax bases, (2) varying program cost factors, (3) district cost
differentials, and (4) differences in per-student costs for equivalent educational programs due to sparsity
and dispersion of student population.
The funding provided by the FEFP is based on the numbers of individual students participating in
particular educational programs. The School is funded through the FEFP as a special district. The
School reports FTE student credit completions for courses offered to students who are Florida residents
to the Department of Education for funding through the FEFP. A numerical value is assigned to each
student according to the student’s hours and days of attendance in those programs. The individual
student thus becomes equated to a numerical value known as an unweighted FTE student enrollment.
For brick and mortar school students, one student would be reported as 1.0 FTE if the student was
enrolled in six courses per day at 50 minutes per course for the full 180-day school year (i.e., six courses
at 50 minutes each per day is 5 hours of class a day or 25 hours per week, which equates to 1.0 FTE).
For virtual education students, one student would be reported as 1.0 FTE if the student has successfully
completed six courses or credits or the prescribed level of content that counts toward promotion to the
next grade. A student who completes less than six credits will be reported as a fraction of an FTE.
Half-credit completions will be included in determining an FTE student enrollment. Credits completed by
a student in excess of the minimum required for that student for graduation are not eligible for funding.
All FTE student enrollment is capped at 1.0 FTE except for the FTE student enrollment reported by the
Department of Juvenile Justice for students beyond the 180-day school year. School districts report all
FTE student enrollment regardless of the 1.0 FTE cap. The Department of Education combines all FTE
student enrollment reported for the student by all school districts, including the Florida Virtual School
Part-Time Program, using a common student identifier. The Department of Education then recalibrates
all reported FTE student enrollment for each student to 1.0 FTE if the total reported FTE for the student
exceeds 1.0 FTE. The FTE student enrollment reported for extended school year periods and the
Department of Juvenile Justice FTE student enrollment reported beyond the 180-day school year is not
included in the recalibration to 1.0 FTE.
Report No. 2018-008 July 2017 Page 1
AUDITOR GENERAL STATE OF FLORIDA Claude Denson Pepper Building, Suite G74
111 West Madison Street Tallahassee, Florida 32399-1450
The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee
INDEPENDENT AUDITOR’S REPORT
Report on Full-Time Equivalent Student Enrollment
We have examined the Florida Virtual School’s (School’s) compliance with State requirements relating
to the classification, assignment, and verification of the full-time equivalent (FTE) student enrollment
reported under the Florida Education Finance Program for the fiscal year ended June 30, 2016. These
requirements are found primarily in Sections 1011.60, 1011.61, and 1011.62, Florida Statutes; State
Board of Education Rules, Chapter 6A-1, Florida Administrative Code; and the FTE General Instructions
2015-16 issued by the Department of Education.
Management’s Responsibility for Compliance
School management is responsible for the School’s compliance with the aforementioned State
requirements, including the design, implementation, and maintenance of internal control to prevent, or
detect and correct, noncompliance due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the School’s compliance with State requirements based on
our examination. Our examination was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants and the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that we plan and perform the examination to obtain reasonable
assurance about whether the classification, assignment, and verification of the full-time equivalent
student enrollment reported by the School under the Florida Education Finance Program complied with
State requirements in all material respects.
An examination involves performing procedures to obtain evidence about whether the School complied
with State requirements. The nature, timing, and extent of the procedures selected depend on our
judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
Phone: (850) 412-2722 Fax: (850) 488-6975
Sherrill F. Norman, CPA Auditor General
Report No. 2018-008 Page 2 July 2017
our opinion. Our examination does not provide a legal determination on the School’s compliance with
State requirements. The legal determination of the School’s compliance with these requirements is the
responsibility of the Department of Education.
Opinion
Our examination disclosed material noncompliance with State requirements relating to the classification,
assignment, and verification of full-time equivalent student enrollment as reported under the Florida
Education Finance Program for students in our Basic with Exceptional Student Education Services test
involving reporting errors or records that were not properly or accurately prepared or were not available
at the time of our examination and could not be subsequently located.
In our opinion, except for the material noncompliance with State requirements described in the preceding
paragraph involving reporting errors or records that were not properly or accurately prepared or were not
available at the time of our examination and could not be subsequently located for students in Basic with
Exceptional Student Education Services, the Florida Virtual School complied, in all material respects,
with State requirements relating to the classification, assignment, and verification of the full-time
equivalent student enrollment reported under the Florida Education Finance Program for the fiscal year
ended June 30, 2016.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we are required to report all deficiencies that are
considered to be significant deficiencies or material weaknesses1 in internal control; fraud and
noncompliance with provisions of laws or regulations that have a material effect on the School’s
compliance with State requirements; and any other instances that warrant the attention of those charged
with governance; noncompliance with provisions of contracts or grant agreements that has a material
effect on the School’s compliance with State requirements; and abuse that has a material effect on the
School’s compliance with State requirements. We are also required to obtain and report the views of
responsible officials concerning the findings, conclusions, and recommendations, as well as any planned
corrective actions.
We performed our examination to express an opinion on the School’s compliance with State requirements
and not for the purpose of expressing an opinion on the School’s related internal control over compliance
with State requirements; accordingly, we express no such opinion. Because of its limited purpose, our
examination would not necessarily identify all deficiencies in internal control over compliance that might
be significant deficiencies or material weaknesses. However, the material noncompliance mentioned
above is indicative of significant deficiencies considered to be material weaknesses in the School’s
internal controls related to reporting errors or records that were not properly or accurately prepared or
were not available at the time of our examination and could not be subsequently located for students in
Basic with Exceptional Student Education Services. Our examination disclosed certain findings that are
required to be reported under Government Auditing Standards and all findings, along with the views of
1 A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that material noncompliance will not be prevented, or detected and corrected, on a timely basis.
Report No. 2018-008 July 2017 Page 3
responsible officials, are described in SCHEDULE D and MANAGEMENT’S RESPONSE, respectively.
The impact of this noncompliance with State requirements on the School’s reported full-time equivalent
student enrollment is presented in SCHEDULES A, B, C, and D.
The School’s written response to this examination has not been subjected to our examination procedures
and, accordingly, we express no opinion on it.
Purpose of this Report
Pursuant to Section 11.45(4)(c), Florida Statutes, this report is a public record and its distribution is not
limited. Attestation standards established by the American Institute of Certified Public Accountants
require us to indicate that the purpose of this report is to provide an opinion on the School’s compliance
with State requirements. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Sherrill F. Norman, CPA Tallahassee, Florida July 20, 2017
Report No. 2018-008 Page 4 July 2017
SCHEDULE A
POPULATIONS, TEST SELECTION, AND TEST RESULTS FULL-TIME EQUIVALENT STUDENT ENROLLMENT
Reported FTE Student Enrollment
The funding provided by the FEFP is based on the numbers of individual students participating in
particular educational programs. The FEFP funds ten specific programs that are grouped under the
following four general program titles: Basic, ESOL, ESE, and Career Education 9-12. The unweighted
FTE represents the FTE prior to the application of the specific cost factor for each program. (See
SCHEDULE B and NOTE A3., A4., and A5.) For the fiscal year ended June 30, 2016, the Florida Virtual
School (School) reported to the Department of Education 32,119.50 unweighted FTE as recalibrated at
five virtual education cost centers.
The School reports FTE student credit completions for courses offered. For virtual education students,
one student would be reported as 1.0000 FTE if the student has successfully completed six courses with
a passing grade or credits earned or completing the prescribed level of content that counts toward
promotion to a higher grade. A student who completes less than six credits will be a fraction of an FTE.
Half-credit completions will be included in determining an FTE. Credits completed by a student in excess
of the minimum required for that student for graduation are not eligible for funding.
Schools and Students
As part of our examination procedures, we tested the FTE student enrollment reported to the Department
of Education for virtual education cost centers and students for the fiscal year ended June 30, 2016. (See
NOTE B.) The population of virtual education cost centers (5) consisted of the total number of cost centers
that offered virtual education instruction in the FEFP-funded programs. The population of students
(189,120) consisted of the total number of students in each program at the virtual education cost centers
in our tests.
We noted the following material noncompliance: exceptions involving reporting errors or records that
were not properly or accurately prepared or were not available at the time of our examination and could
not be subsequently located for 8 of the 39 students in our Basic with ESE Services test.2
Our populations and tests of cost centers and students are summarized as follows:
Number of Number of Students Students Recalibrated
Cost Centers at Cost Centers Tested With Unweighted FTE Proposed
Programs Population Test Population Test Exceptions Population Test Adjustments
Basic 5 5 188,723 277 17 30,492.6100 133.6409 (1.5931) Basic with ESE Services 2 2 397 39 8 358.4300 33.0710 (3.0179) Career Education 9‐12 0 0 0 0 0 1,268.4600 .0000 (.3508)
All Programs 5 5 189,120 316 25 32,119.5000 166.7119 (4.9618)
2 For Basic with ESE Services, the material noncompliance is composed of Findings 2 and 5 on SCHEDULE D.
Report No. 2018-008 July 2017 Page 5
Teachers
We also tested teacher qualifications as part of our examination procedures. (See NOTE B.) Specifically,
the population of teachers (1,627) consisted of the total number of teachers reported under virtual
education cost centers in our test who taught courses in Basic, Basic with ESE Services, and Career
Education 9-12. From the population of teachers, we selected 148 and found exceptions for 3 teachers.
Proposed Adjustments
Our proposed adjustments present the net effects of noncompliance disclosed by our examination
procedures, including those related to our test of teacher qualifications. Our proposed adjustments
generally reclassify the reported FTE to Basic education, except for noncompliance involving a student’s
enrollment or attendance in which case the reported FTE is taken to zero. (See SCHEDULES B, C,
and D.)
The ultimate resolution of our proposed adjustments to the FTE student enrollment and the computation
of their financial impact is the responsibility of the Department of Education.
Report No. 2018-008 Page 6 July 2017
SCHEDULE B
EFFECT OF PROPOSED ADJUSTMENTS ON WEIGHTED FULL-TIME EQUIVALENT STUDENT ENROLLMENT
Proposed Net Cost Weighted No. Program (1) Adjustment (2) Factor FTE (3)
101 Basic K‐3 (2.1270) 1.115 (2.3716)
102 Basic 4‐8 .7664 1.000 .7664
103 Basic 9‐12 (.2325) 1.005 (.2337)
111 Grades K‐3 with ESE Services (1.0000) 1.115 (1.1150)
112 Grades 4‐8 with ESE Services (2.6012) 1.000 (2.6012)
113 Grades 9‐12 with ESE Services .5833 1.005 .5862
300 Career Education 9‐12 (.3508) 1.005 (.3526)
Total (4.9618) (5.3215)
Notes: (1) See NOTE A7. (2) These proposed net adjustments are for unweighted FTE. (See SCHEDULE C.) (3) Weighted adjustments to the FTE are presented for illustrative purposes only. The weighted adjustments to the
FTE do not take special program caps or allocation factors into consideration and are not intended to indicate the FTE used to compute the dollar value of adjustments. That computation is the responsibility of the Department of Education. (See NOTE A5.)
Report No. 2018-008 July 2017 Page 7
SCHEDULE C
PROPOSED ADJUSTMENTS BY SCHOOL FULL-TIME EQUIVALENT STUDENT ENROLLMENT
Proposed Adjustments (1) Balance No. Program #0300 #0400 #0500 Forward
101 Basic K‐3 1.0000 ..... ..... 1.0000
102 Basic 4‐8 2.6012 ..... (.7506) 1.8506
103 Basic 9‐12 ..... (.6667) .4342 (.2325)
111 Grades K‐3 with ESE Services (1.0000) ..... ..... (1.0000)
112 Grades 4‐8 with ESE Services (2.6012) ..... ..... (2.6012)
113 Grades 9‐12 with ESE Services ..... .5833 ..... .5833
300 Career Education 9‐12 ..... .0834 (.4342) (.3508)
Total .0000 .0000 (.7506) (.7506)
Note: (1) These proposed net adjustments are for unweighted FTE. (See NOTE A5.)
Report No. 2018-008 Page 8 July 2017
Proposed Adjustments (1) Brought No. Program Forward #0700 Total
101 Basic K‐3 1.0000 (3.1270) (2.1270)
102 Basic 4‐8 1.8506 (1.0842) .7664
103 Basic 9‐12 (.2325) ..... (.2325)
111 Grades K‐3 with ESE Services (1.0000) ..... (1.0000)
112 Grades 4‐8 with ESE Services (2.6012) ..... (2.6012)
113 Grades 9‐12 with ESE Services .5833 ..... .5833
300 Career Education 9‐12 (.3508) ..... (.3508)
Total (.7506) (4.2112) (4.9618)
Note: (1) These proposed net adjustments are for unweighted FTE. (See NOTE A5.)
Report No. 2018-008 July 2017 Page 9
SCHEDULE D
FINDINGS AND PROPOSED ADJUSTMENTS FULL-TIME EQUIVALENT STUDENT ENROLLMENT
Overview
Management is responsible for determining that the FTE student enrollment as reported under the FEFP
is in compliance with State requirements. These requirements are found primarily in Sections 1011.60,
1011.61, and 1011.62, Florida Statutes; SBE Rules, Chapter 6A-1, FAC; and the FTE General
Instructions 2015-16 issued by the Department of Education. Except for the material noncompliance
involving reporting errors or records that were not properly or accurately prepared or were not available
at the time of our examination and could not be subsequently located for students in Basic with ESE
Services, the Florida Virtual School complied, in all material respects, with State requirements relating to
the classification, assignment, and verification of the FTE student enrollment as reported under the FEFP
for the fiscal year ended June 30, 2016. All noncompliance disclosed by our examination procedures is
discussed below and requires management’s attention and action as presented in SCHEDULE E.
Proposed Net Adjustments Findings (Unweighted FTE)
Our examination included the July and October 2015 reporting survey periods and the February and June 2016 reporting survey periods (See NOTE A6.). Unless otherwise specifically stated, the Findings and Proposed Adjustments presented herein are for the October 2015 reporting survey period, February 2016 reporting survey period, or June 2016 reporting survey period or all. Accordingly, our Findings do not mention specific reporting survey periods unless necessary for a complete understanding of the instances of noncompliance being disclosed.
Florida Virtual School Full Time K‐8 (#0300)
1. [Ref. 30002] The instructional schedules for 12 ESE students were not reported in
their entirety. The students’ IEPs scheduled Speech Therapy, Language Therapy, or
Occupational Therapy services and documentation was in the students’ files that
evidenced the services were provided; however, the services were not reported in the
students’ instructional schedules. Since this exclusion did not specifically affect the
overall FEFP funding of the students, we present this disclosure finding with no proposed
adjustment.
.0000
2. [Ref. 30001] Our review of the files for five ESE students disclosed that the IEPs
for four students were prepared after the October 2015 reporting survey period had
ended and, for the other student, the file did not contain documentation to support that
the parents were advised of, and invited to, the student’s EP development meeting. We
propose the following adjustment:
Report No. 2018-008 Page 10 July 2017
Proposed Net Adjustments Findings (Unweighted FTE)
Florida Virtual School Full Time K‐8 (#0300) (Continued) 101 Basic K‐3 1.0000 102 Basic 4‐8 1.7010 111 Grades K‐3 with ESE Services (1.0000) 112 Grades 4‐8 with ESE Services (1.7010) .0000
3. [Ref. 30071] One teacher was not properly certified and was not approved by the
School Board to teach out‐of‐field. The teacher held certification in English, World
Language (French), and Social Science but taught a course that also required the Reading
Endorsement. We also noted that the students’ parents were not notified of the teacher’s
out‐of‐field status. We propose the following adjustment:
102 Basic 4‐8 .9002 112 Grades 4‐8 with ESE Services (.9002) .0000 .0000
Florida Virtual School Full‐Time 9‐12 (#0400) 4. [Ref. 40001] The course schedules for eight students were incorrectly reported
for one course. The course was reported as a Basic 9‐12 course (course No. 0800370,
Parenting 1) but should have been reported as a Career Education 9‐12 course (course
No. 8500300, Parenting Skills). This oversight was found and corrected on the students’
transcripts but was inadvertently not corrected in the students’ schedules. We propose
the following adjustment:
103 Basic 9‐12 (.6667) 300 Career Education 9‐12 .6667 .0000
5. [Ref. 40002] The course schedules for three ESE students were incorrectly
reported as they included a portion of the students’ instructional time in Program No. 300
(Career Education 9‐12). The course schedules of ESE students should be reported
entirely in ESE. In addition, one student was provided Speech Therapy as scheduled in
the student’s IEP and there was documentation to support that the services were
provided but this information was not reported in the student’s instructional schedule.
This exclusion did not affect the overall FEFP funding of the student. We propose the
following adjustment:
113 Grades 9‐12 with ESE Services .5833 300 Career Education 9‐12 (.5833) .0000 .0000
Report No. 2018-008 July 2017 Page 11
Proposed Net Adjustments Findings (Unweighted FTE)
Florida Virtual School Part Time 6‐8 (#0500) 6. [Ref. 50002] School records did not demonstrate that two students were Florida
residents or that the students had been enrolled in a Florida school district Home
Education Program. Consequently, we could not validate the students’ eligibility to be
reported in a Florida virtual education program. We propose the following adjustment:
102 Basic 4‐8 (.7506) (.7506)
7. [Ref. 50071] One teacher was not properly certified and was not approved by the
School Board to teach out‐of‐field. The teacher held certification in Computer Science
and Math but taught a course that required certification in Business Education. We also
noted the students’ parents were not notified of the teacher’s out‐of‐field status. We
propose the following adjustment:
103 Basic 9‐12 .4342 300 Career Education 9‐12 (.4342) .0000 (.7506)
Florida Virtual School Part Time 9‐12 (#0600) 8. [Ref. 60071] One teacher did not complete the GK requirements within 1 calendar
year from the date of employment under a temporary certificate as required by Section
1012.56(7), Florida Statutes. Since the students were only reported in Basic education
programs, we present this disclosure finding with no proposed adjustment.
.0000 .0000
Florida Virtual School Part Time K‐5 (#0700) 9. [Ref. 70001/03] School records did not demonstrate that three students were
Florida residents or that the students were enrolled in a Florida school district Home
Education Program. Consequently, we could not validate the students’ eligibility to be
reported in a Florida virtual education program. We propose the following adjustment:
Ref. 70001 101 Basic K‐3 (1.2510) (1.2510) Ref. 70003 101 Basic K‐3 (.4170) (.4170)
Report No. 2018-008 Page 12 July 2017
Proposed Net Adjustments Findings (Unweighted FTE)
10. [Ref. 70002] Four students in our Basic test did not meet the eligibility criteria for
placement in a virtual education program for the 2015‐16 school year. In addition, the
documentation to support one student’s enrollment in a Florida school district Home
Education Program was not available at the time of our examination and could not
subsequently be located. We propose the following adjustment
101 Basic K‐3 (1.4590) 102 Basic 4‐8 (1.0842) (2.5432)
(4.2112) Proposed Net Adjustment (4.9618)
Report No. 2018-008 July 2017 Page 13
SCHEDULE E
RECOMMENDATIONS AND REGULATORY CITATIONS FULL-TIME EQUIVALENT STUDENT ENROLLMENT
RECOMMENDATIONS
We recommend that Florida Virtual School (School) management exercise more care and take corrective
action, as appropriate, to ensure that: (1) documentation is maintained to support the Florida residency
of students reported for FEFP funding; (2) students’ instructional schedules are reported in the proper
FEFP funding categories for the correct amount of FTE and documentation is on file to support that
reporting; (3) students’ instructional schedules are reported in their entirety inclusive of all courses taken;
(4) IEPs are timely prepared for students reported in ESE programs, and parents are advised of, and
invited to, the students’ EP development meetings; (5) students meet the eligibility criteria prior to
enrollment in a virtual education program and supporting documentation is maintained, including
enrollment in Home Education Programs with their respective school districts; (6) teachers are properly
certified or, if out of field, are timely approved to teach out of field by the School Board; (7) parents are
timely notified when their children are assigned to teachers teaching out of field; and (8) teachers with
temporary certificates pass the GK test within the required timeline.
The absence of statements in this report regarding practices and procedures followed by the School
should not be construed as acceptance, approval, or endorsement of those practices and procedures.
Additionally, the specific nature of this report does not limit or lessen the School’s obligation to comply
with all State requirements relating to the classification, assignment, and verification of the FTE student
enrollment as reported under the FEFP.
REGULATORY CITATIONS
Reporting
Section 1007.271(21), Florida Statutes, Dual Enrollment Programs
Section 1011.60, Florida Statutes, Minimum Requirements of the Florida Education Finance Program
Section 1011.61, Florida Statutes, Definitions
Section 1011.62, Florida Statutes, Funds for Operation of Schools
SBE Rule 6A-1.0451, FAC, Florida Education Finance Program Student Membership Surveys
SBE Rule 6A-1.045111, FAC, Hourly Equivalent to 180-Day School Year
SBE Rule 6A-1.04513, FAC, Maintaining Auditable FTE Records
FTE General Instructions 2015-16
Attendance
Section 1003.23, Florida Statutes, Attendance Records and Reports
SBE Rule 6A-1.044(3) and (6)(c), FAC, Pupil Attendance Records
SBE Rule 6A-1.04513, FAC, Maintaining Auditable FTE Records
FTE General Instructions 2015-16
Report No. 2018-008 Page 14 July 2017
Comprehensive Management Information System: Automated Student Attendance Recordkeeping
System Handbook
Exceptional Education
Section 1003.57, Florida Statutes, Exceptional Students Instruction
Section 1011.62, Florida Statutes, Funds for Operation of Schools
Section 1011.62(1)(e), Florida Statutes, Funding Model for Exceptional Student Education Programs
SBE Rule 6A-6.03028, FAC, Provision of Free Appropriate Public Education (FAPE) and Development
of Individual Educational Plans for Students with Disabilities
SBE Rule 6A-6.03029, FAC, Development of Individualized Family Support Plans for Children with
Disabilities Ages Birth Through Five Years
SBE Rule 6A-6.0312, FAC, Course Modifications for Exceptional Students
SBE Rule 6A-6.0331, FAC, General Education Intervention Procedures, Evaluation, Determination of
Eligibility, Reevaluation and the Provision of Exceptional Student Education Services
SBE Rule 6A-6.0334, FAC, Individual Educational Plans (IEPs) and Educational Plans (EPs) for
Transferring Exceptional Students
SBE Rule 6A-6.03411, FAC, Definitions, ESE Policies and Procedures, and ESE Administrators
SBE Rule 6A-6.0361, FAC, Contractual Agreements with Nonpublic Schools and Residential Facilities
Matrix of Services Handbook (2015 Edition)
Teacher Certification
Section 1012.42(2), Florida Statutes, Teacher Teaching Out-of-Field; Notification Requirements
Section 1012.55, Florida Statutes, Positions for Which Certificates Required
SBE Rule 6A-1.0502, FAC, Non-certificated Instructional Personnel
SBE Rule 6A-1.0503, FAC, Definition of Qualified Instructional Personnel
SBE Rule 6A-4.001, FAC, Instructional Personnel Certification
SBE Rule 6A-6.0907, FAC, Inservice Requirements for Personnel of Limited English Proficient Students
Virtual Education
Section 1002.321, Florida Statutes, Digital Learning
Section 1002.37, Florida Statutes, The Florida Virtual School
Section 1002.45, Florida Statutes, Virtual Instruction Programs
Section 1002.455, Florida Statutes, Student Eligibility for K-12 Virtual Instruction
Section 1003.498, Florida Statutes, School District Virtual Course Offerings
Report No. 2018-008 July 2017 Page 15
NOTES TO SCHEDULES
NOTE A – SUMMARY FULL-TIME EQUIVALENT STUDENT ENROLLMENT
A summary discussion of the significant features of the Florida Virtual School (School), the FEFP, the
FTE, and related areas is provided below.
1. The School
The School was established pursuant to Section 1002.37(1)(a), Florida Statutes, to develop and deliver
online and distance learning education. The School’s mission as stated in Section 1002.37(1)(b), Florida
Statutes, is to provide students with technology-based educational opportunities to gain the knowledge
and skills necessary to succeed. The School serves any student in the State who meets the profile for
success in this educational delivery context and also meets eligibility criteria for participation in the virtual
education programs. The Commissioner of Education is responsible for monitoring the School’s
performance and reporting such performance to the State Board of Education and the Legislature.
Section 1002.37(2), Florida Statutes, provides that the School is to be governed by a Board of Trustees
(Board) composed of seven members appointed by the Governor to 4-year staggered terms. The
executive officer of the Board is the appointed President and Chief Executive Officer. For the fiscal year
ended June 30, 2016, the School operated five virtual education cost centers serving PK through
12th-grade students.
For the fiscal year ended June 30, 2016, State funding totaling $168 million was provided through the
FEFP to the School for the School-reported 32,119.50 unweighted FTE as recalibrated. The primary
sources of funding for the School are funds from the FEFP.
2. FEFP
Florida school districts receive State funding through the FEFP to serve PK through 12th-grade students
(adult education is not funded by the FEFP). The FEFP was established by the Florida Legislature in
1973 to guarantee to each student in the Florida public school system, including charter schools, the
availability of programs and services appropriate to the student’s educational needs that are substantially
equal to those available to any similar student notwithstanding geographic differences and varying local
economic factors. To provide equalization of educational opportunity in Florida, the FEFP formula
recognizes: (1) varying local property tax bases, (2) varying program cost factors, (3) district cost
differentials, and (4) differences in per-student cost for equivalent educational programs due to sparsity
and dispersion of student population.
3. FTE Student Enrollment
The funding provided by the FEFP is based on the numbers of individual students participating in
particular educational programs. The School is funded through the FEFP as a special district. The
School reports FTE student credit completions for courses offered to students who are Florida residents
to the Department of Education for funding through the FEFP. A numerical value is assigned to each
student according to the student’s hours and days of attendance in those programs. The individual
Report No. 2018-008 Page 16 July 2017
student thus becomes equated to a numerical value known as an unweighted FTE student enrollment.
For example, for PK through 3rd grade, 1.0 FTE is defined as one student in membership in a program or
a group of programs for 20 hours per week for 180 days; for grade levels 4 through 12, 1.0 FTE is defined
as one student in membership in a program or a group of programs for 25 hours per week for 180 days.
For brick and mortar school students, one student would be reported as 1.0 FTE if the student was
enrolled in six courses per day at 50 minutes per course for the full 180-day school year (i.e., six courses
at 50 minutes each per day is 5 hours of class a day or 25 hours per week, which equates to 1.0 FTE).
For virtual education students, one student would be reported as 1.0 FTE if the student has successfully
completed six courses or credits or the prescribed level of content that counts toward promotion to the
next grade. A student who completes less than six credits will be reported as a fraction of an FTE.
Half-credit completions will be included in determining an FTE student enrollment. Credits completed by
a student in excess of the minimum required for that student for graduation are not eligible for funding.
4. Recalibration of FTE to 1.0
All FTE student enrollment is capped at 1.0 FTE except for the FTE student enrollment reported by the
Department of Juvenile Justice for students beyond the 180-day school year. School districts report all
FTE student enrollment regardless of the 1.0 FTE cap. The Department of Education combines all FTE
student enrollment reported for the student by all school districts, including the Florida Virtual School
Part-Time Program, using a common student identifier. The Department of Education then recalibrates
all reported FTE student enrollment for each student to 1.0 FTE, if the total reported FTE for the student
exceeds 1.0 FTE. The FTE student enrollment reported for extended school year periods and the
Department of Juvenile Justice FTE student enrollment reported beyond the 180-day school year is not
included in the recalibration to 1.0 FTE.
5. Calculation of FEFP Funds
The amount of State and local FEFP funds is calculated by the Department of Education by multiplying
the number of unweighted FTE in each educational program by the specific cost factor of each program
to obtain weighted FTEs. Weighted FTEs are multiplied by the base student allocation amount and that
product is multiplied by the appropriate cost differential factor. Various adjustments are then added to
obtain the total State and local FEFP dollars. All cost factors, the base student allocation amount, cost
differential factors, and various adjustment figures are established by the Florida Legislature.
6. FTE Reporting Survey Periods
The FTE is determined and reported during the school year by means of four FTE membership survey
periods that are conducted under the direction of district and school management. Each survey period
is a testing of the FTE membership for a period of 1 week. The survey periods for the 2015-16 school
year were conducted during and for the following weeks: survey period one was performed for
July 6 through 10, 2015; survey period two was performed for October 12 through 16, 2015; survey
period three was performed for February 8 through 12, 2016; and survey period four was performed for
June 13 through 17, 2016.
Report No. 2018-008 July 2017 Page 17
7. Educational Programs
The FEFP funds ten specific programs under which instruction may be provided as authorized by the
Florida Legislature. The general program titles under which these specific programs fall are: (1) Basic,
(2) ESOL, (3) ESE, and (4) Career Education 9-12.
8. Statutes and Rules
The following statutes and rules are of significance to the administration of Florida public education:
Chapter 1000, Florida Statutes, K-20 General Provisions
Chapter 1001, Florida Statutes, K-20 Governance
Chapter 1002, Florida Statutes, Student and Parental Rights and Educational Choices
Chapter 1003, Florida Statutes, Public K-12 Education
Chapter 1006, Florida Statutes, Support for Learning
Chapter 1007, Florida Statutes, Articulation and Access
Chapter 1010, Florida Statutes, Financial Matters
Chapter 1011, Florida Statutes, Planning and Budgeting
Chapter 1012, Florida Statutes, Personnel
SBE Rules, Chapter 6A-1, FAC, Finance and Administration
SBE Rules, Chapter 6A-4, FAC, Certification
SBE Rules, Chapter 6A-6, FAC, Special Programs I
NOTE B – TESTING FTE STUDENT ENROLLMENT
Our examination procedures for testing provided for the selection of schools, students, and teachers
using judgmental methods for testing the FTE student enrollment as reported under the FEFP to the
Department of Education for the fiscal year ended June 30, 2016. Our testing process was designed to
facilitate the performance of appropriate examination procedures to test the School’s compliance with
State requirements relating to the classification, assignment, and verification of the FTE student
enrollment as reported under the FEFP. The following schools were selected for testing:
School Findings
1. Florida Virtual School Full Time K-8 1 through 3 2. Florida Virtual School Full Time 9-12 4 and 5 3. Florida Virtual School Part Time 6-8 6 and 7 4. Florida Virtual School Part Time 9-12 8 5. Florida Virtual School Part Time K-5 9 and 10
Report No. 2018-008 Page 18 July 2017
MANAGEMENT’S RESPONSE
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